Dino-
The l/o situation would probably work fine, if you get atleast 1 year *(more preferably) – If this guy can’t sell his house, how can he tell you what to do and how long—the ball should be in your court (you are helping him)-- ask for 4 yrs, let him beat you down to 2 years l/o – then sell it REnt to own for 1 yr or 2 yrs at $115k or so – You should sell it w/o trouble-- the problem with a 6 mo l/o is you then have to simply market it for sale, probably have to still sell below mkt value to move it-- then if you don’t sell-- you don’t want to pick it up at 95 if its worth 115-- thats way to high, especially if it needs some work.
Jason
Owner is willing to sell me his house for $95,000. FMV of the house is $116,000 - $120,000. He is highly motivated, and is considering allowing me to buy on a 6 month L/O. He will accept $2,000 down with the remaining balance due on, or before the end of the lease.
I`m not overly concerned about the front end(“The Purchase”)I am more concerned about the tail end( “The Sell”).
This house has been listed with a realtor for 6 monthes, a lot of lookers but no bites. It currently is listed at $118,500. He has already cleared it with the realtor to release him from his contract. The realtor has no real answers as to why it won`t sell. The area is known to sell fairly quickly. This house is in decent shape , could use about $1,500 worth of cosmetic fix-up.
The house next door is FSBO. It has 200 less sq. ft. and is wood frame, the house I am considering is a 2 story brick.The FSBO is asking ( for some odd reason) $134,500. If the realtor could not sell it with the MLS listing, what creative things can I do to market this property?
Since I have access to bank funds, my ultimate back door would be to cash it out for $95,000. But I would rather not tie up those funds if I don`t have to.
If this were your deal, which way would you go?
Any suggestions would be considered, and greatly appreciated
I wouldn’t do the deal unless I got at least a two year lease option from the seller.
If I could not get more than two years, then I would sign a one year L/O with a one year extension (try to get a 25 or 26 month lease option just in case your first tenant /buyer (optionee) does not exercise their option. The extra month or two will give you some time to find a second tenant buyer and still be able to give them a one year lease.)
I would also make the deal contingent on you finding a qualified resident within 21 working days
That gives you about one month to find a tenant buyer. If you can not find a tenant buyer in one month, you probably never will be able to find one.